Six Authorities Issued "Circular” to Extend RMB Settlement in Cross-border Trade to All Import and Export Enterprises

On March 5, six authorities, including the People's Bank of China jointly issued the "Circular of the People's Bank of China, the Ministry of Finance, the Ministry of Commerce, the General Administration of Customs, the State Administration of Taxation and China Banking Regulatory Commission on Issues Relating to Business Management of RMB Settlement of Outward Cargo Trade" (the "Circular") that stipulates any enterprises with import and export business qualifications may carry out RMB settlement of outward cargo trade.

It is understood that the subjects participating in RMB settlement of outward cargo trade in the past were strictly limited to the enterprises of pilot list. However the "Circular" issued this time will extend the settlement subjects to all enterprises with import and export business qualifications. Thus enterprises engaging in import and export cargo trade, service trade and other current items in China may select pricing, billing and collection and payment in RMB.